Hashdex : A modest crypto allocation may improve your portfolio's risk-adjusted return

The investment case for crypto

A modest crypto allocation may improve your portfolio’s risk-adjusted return

An investment portfolio is built around a diversification strategy aimed at providing a mix of assets with varying return characteristics. Crypto, considered as an alternative asset class because it falls outside of the typical stock and bond mix, can help bring these diversification benefits to a portfolio.

It’s also important to consider diversification among crypto assets. Crypto assets are competing for users in many different segments, and only time will tell which assets-and segments-take off. We believe having broad crypto exposure is a great way to participate in this market without the idiosyncratic risk of investing in individual assets.

Index mechanism

Simulations from 01/01/2017 to 31/08/2022. Crypto assets represented by the HDAI (until 31/05/2020) and NCI (until 06/01/2020) indexes. Rebalanced at every 10 days. Simulated portfolio composition without NCI: 60% MSCI ACWI & 40% Bloomberg Barclays US Aggregate. Past performance does not guarantee future performance.

Five key characteristics that make crypto attractive for investors of all stripes:
1. 1.Unique supply/demand dynamic


2. 2. Enormous growth potential


3. 3. Investment capital with projects covering every corner of the economy


4. 4. Social, political, and macroeconomic changes are driving global crypto adoption


5. 5. Web3 and the metaverse



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